Pimco client outflows will hit profit: Allianz

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A shareholder of Europe's biggest insurer Allianz SE arrives for company's annual meeting in MunichFRANKFURT/MUNICH (Reuters) – Outflows of customer funds from U.S. investment manager Pimco will hurt earnings this year – and it is not yet possible to predict when flows might turn positive again, owner Allianz (ALVG.DE) warned on Wednesday. Pimco – which contributes more than a fifth of the German insurer’s operating profit – saw record outflows and management turmoil last year, including the acrimonious departure of its leader Bill Gross, known as the “Bond King”. Investors have continued to withdraw money this year, albeit at a slower pace, and Pimco’s flagship Total Return Fund has lost its title as the world’s biggest bond mutual fund. “In asset management, the outflows from last year will burden the result in 2015,” Michael Diekmann told Allianz’s annual shareholder meeting on his last day as chief executive of Europe’s largest insurer.

 

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